Right product, right price

Sunway Property’s launches do well in a challenging market

After recording positive numbers in 2018, Sunway Property will be aiming to expand its land bank and increase contributions from overseas operations in the coming year.

Currently active in Penang, Perak, Klang Valley and Johor, the company will be on the lookout for land bank opportunities in other states as well, says property division managing director Sarena Cheah.

“Malaysia is going through a renewal process. We believe in the medium to long-term prospects of the country, so we will continue to look for opportunities,” she said.

Outside of Malaysia, Sunway Property has been active in Singapore and China. Cheah said: “Although we have plans to expand beyond the two countries, we are aware of international challenges that lie ahead.

“We have been looking at Australia and even the UK, but we have to take a more cautious stand especially at this time of global trade wars. We have done well in Singapore and China, so we will continue to expand there.”

Cheah added that in the scope of two to three years, Sunway Property’s international portfolio is targeted to contribute close to 30% of its overall profits (from the current 10%).

Sarena Cheah assumed full control of Sunway’s key property unit earlier this year.

Ending on a positive note

Despite the soft property market in 2018, Sunway Property is confident of ending the year on a positive note – spurred on by overseas sales and new launches. Cheah says the company should do better than the target of RM1.3bil in sales.

“The property market has consolidated in the past three to four years after Bank Negara introduced tightening measures. I think that is good for the property market in the medium to longer term.

“So far this year, the market has done quite well. We have been fortunate to launch in strong locations, either in transit developments or townships within our own developments. I believe we will end the year with RM1.7bil in sales, helped by our overseas concerns,” she said.

As for local products, Cheah said the performance of the new properties has been encouraging. Among them is Sunway GEO, a condominium opposite Sunway Medical Centre within Bandar Sunway, which has garnered a take-up rate of up to 80% primarily because of its strong location within a fully integrated township.

The performance of new properties has been encouraging, including the Sunway GEO condominium opposite SunwayMedical Centre in Bandar Sunway.

Another new launch is Sunway Velocity 2, which adjoins Sunway Velocity within a 23-acre integrated development in Kuala Lumpur and served by two MRT stations.

Cheah said: “That particular development is nearly completed and we have actually sold everything there. It is anchored by a mall, a hotel and offices. By next year we will open our medical centre.”

As for Velocity 2, the launch of serviced apartments has been met positively by buyers. “We have sold about 80% of the first phase,” Cheah added.

In Johor, sales of Sunway’s Citrine Lakehomes – landed products comprising townhouses – have also reached 80%. “These launches have returned strong figures because we have put out the right products with the right prices in a market that is relatively more challenging,” said Cheah.

She said that their operations in Singapore and China have performed exceptionally well and has contributed significantly to the company’s profits during the slowdown in the local market.

“Our executive condo in Singapore is 100% sold and we are doing 80% to 90% in China, both of which have helped us exceed our sales forecast for this year.

“This year has not been the easiest, but we have been able to sell the majority of units in our launches. Moving forward, we hope to continue with this performance,” said Cheah.